Detroit Bureau on Twitter

Posts Tagged ‘auto suppliers’

Auto Suppliers Expect an Acquisition Binge

But don's expect much job growth, cautions survey.

by on Dec.18, 2015

Many of the mergers and acquisitions are likely to happen in high-tech areas.

As tough as the Great Recession was on automotive manufacturers like General Motors and Chrysler Corp., it arguably was even tougher on industry suppliers, scores going bankrupt and many force to close their doors for good.

Now, the dramatic upturn is buoying bottom lines and, flush with cash, a new survey finds, the industry’s parts manufacturers are set to go on a buying spree. That said, suppliers aren’t just tossing their money around, more than three out of five saying they plan to focus on cost cutting and other efficiency matters in 2016.

For the Record!

“Nearly 60% of survey respondents are expecting to pursue acquisitions in the next 12 months,” according to the annual Capital Confidence Barometer pulled together by consulting firm EY.


Toyota, Honda Have Best Relationship With Suppliers

Relationship with Detroit makers continues to deteriorate, finds study.

by on May.19, 2015

Honda's relationship with its suppliers is the best in the auto industry, according to a recent survey. Toyota tied for the top spot.

When Henry Ford built his massive rouge assembly complex near Detroit, he’d ship in sand and iron ore at one end, then truck out fully assembled vehicles at the other. But that era is long gone, and these days, manufacturers are highly dependent on suppliers who provide a major share of the parts and components that go into a modern vehicle.

But how well suppliers and automakers work together varies widely, and a new study finds that Toyota and Honda have the strongest relationship with U.S. parts suppliers while the situation has actually deteriorated when it comes to Detroit’s Big Three.

Automotive Insight!

Toyota Motor Corp. and Honda Motor Co. topped the list, according to the 15th annual Automotive OEM Supplier Working Relations Index, a study produced by Planning Perspectives, Inc., in Birmingham, Michigan. It was the fifth year in a row the two Japanese makers led the industry. (more…)

Automakers Still Focus on Cost Over Quality, Suppliers Claim

Quality dropping to gain savings despite assertions about quality and safety.

by on Oct.29, 2014

GM's CEO Mary Barra says quality is the company's top consideration, but suppliers are saying GM and other automakers are focused more on cost.

During a widely attended speech this week, General Motors CEO Mary Barra said the automaker is intent on “raising the bar” on safety and quality – but is that aggressive push by GM and its competitors really having the desired affect on their corporate cultures? Automotive suppliers are saying it isn’t.

A recent survey of suppliers says that cost is beginning to be the biggest driver in its dealing with makers – at the expense of quality and potentially safety.

Subscribe and Stay on Top!

IHS Automotive’s SuRe Index suggests that the relationships between automakers and their suppliers are worsening, in some measure because they don’t see eye-to-eye on how to improve the quality of cars and trucks, which has been a recurrent theme in the history of the parties. (more…)

Global Auto Industry Expansion Expected to Continue

Makers, suppliers exploit growth using flexible platforms.

by on Aug.13, 2014

IHS Automotive predicts automakers and suppliers around the world will continue seeing growth for several years.

The expansion of the global automotive industry is expected to continue in the near term and automakers and their suppliers should be able exploit that growth using flexible vehicle platforms, according to a new study by IHS Automotive.

At the same time, manufacturers and their suppliers also are working to implement more complex vehicle and process technology for advanced safety, lighter weight materials, emissions reduction and fuel economy targets in tandem with a global convergence of emissions standards that will raise the efficiency of global platforms.

Your High-Quality Auto News Source!

The strong recovery of the industry brings a new energy to the global market, said Michael Robinet, managing director, IHS Automotive. (more…)

Japanese Supplier Admits Price Fixing

Will pay $18 fine in Justice Dept. probe.

by on Oct.31, 2012

Supplier Tokai Rika likely wasn't delighted at the reality of being convicted for price-fixing.

A Japanese supplier has pled guilty in a probe by the U.S. Justice Department into price fixing in the auto industry, which continues to grow and has now snared nine different companies on three different regions of the world.

Nagoya, Japan-based Tokai Rika Co. Ltd. has agreed to plead guilty and to pay a $17.7 million criminal fine for its role in a conspiracy to fix prices of heater control panels installed in cars sold in the United States and elsewhere, the Department of Justice announced.

Stay in the Know!

Tokai Rika has also agreed to plead guilty to a charge of obstruction of justice related to the investigation of the antitrust violation. The company’s American arm is based in Plymouth, and it also has units in Battle Creek and Jackson.


Auto Suppliers Souring on Toyota, Honda

But relationship with GM, Chrysler markedly improved.

by on May.14, 2012

A good relationship with suppliers can have a strong impact on how things go on the assembly plant floor.

Long the go-to customers for automotive partsmakers, Toyota and Honda have seen a sharp slide in the tenor of their relationship with industry suppliers, according to a new study, while things are markedly improving when it comes to General Motors and Chrysler.

The relationship between supplies and Original Equipment Manufacturers, or OEMs, can have a significant impact on an automaker’s business, especially at a time when U.S. car sales are growing faster than anticipated and partsmakers are struggling to keep up with demand, cautioned John Henke, the president of Panning Perspectives, a suburban Detroit research firm.

Subscribe Now! Free!

“There’s enough business suppliers don’t have to take nonsense” from a manufacturer, said Henke, who today released his 12th annual survey on supplier/OEM relations.


General Motors and Ford want American suppliers to follow them into Russia.

GM planning $1 billion investment in old Soviet heartland.

by on Jan.25, 2012

Cars move along Ford's assembly line in St. Petersburg.

General Motors is planning to invest more than $1 billion in Russia over the next five years, said James Bovenzi, managing director of GM Russia and CIS, and it expects production, including production by its joint venture partners, to double from 232,000 units in 2010 to more than 520,000 units in 2015.

But the maker doesn’t want to do it alone.  GM wants its traditional supply network to follow along.  And so do Ford, which sees significant growth potential of its own in Russia.

Your Winning News Source!

“The reason we are there is we see opportunity,” Bovenzi said during a dinner meeting arranged by the U.S.-Russia Business Council to encourage American automotive suppliers to consider investments in Russia.

“There is a lot of pent-up demand in Russia” he noted. “The average vehicle is more than 10 years old.  The middle class is growing and nine of the 10 best-selling cars in Russia are foreign brands,” noted Bovenzi, adding GM’s Chevrolet brand was a top seller.


Investigation Brings Warning for TRW

Supplier facing trans-Atlantic probe.

by on Jul.13, 2011

TRW Automotive faces antitrust investigations in both the U.S. and European Union, it revealed.

Auto parts giant TRW Automotive Holdings Corp. is warning it could face financial penalties stemming from investigations into anti-competitive practices now underway by regulators in both the European Union and the United States.

The warning comes as EU and US regulators ramp up an investigation into anti-competitive practices that began in 2009, during the depths of the global automotive downturn.  Critics have contended that some major suppliers used the shake-out of weaker vendors to not just lock down more business but ensure they could drive up prices for raw materials, parts and more complex component systems.

The Inside Story!

“Competition and antitrust law investigations often continue for several years and can result in significant penalties being imposed by the European authorities as well as the U.S. Department of Justice, as is evidenced by the significant fines the European Commission has imposed, in some cases, for violations in other sectors, TRW said in a statement this week.


Johnson Controls Buys Recaro

Recaro best known for performance seating.

by on Dec.31, 2010

A pair of Recaro seats.

Johnson Controls Inc., one of the world’s top automotive suppliers, has swooped in to acquire one of the top names in automobile seating – Recaro.

JCI has signed a purchase agreement to acquire the German automotive  supplier Keiper and the Recaro-brand specialty seat business. Financial details regarding the transaction were not disclosed.

“This acquisition further strengthens our metal components and mechanisms business through the addition of the Keiper and Recaro brands which are synonymous with quality, technical expertise and innovation,” said Beda Bolzenius, Vice President, Johnson Controls and President, Automotive Experience. ”

Your Trusted Source! Click Here to Subscribe!

“It provides leading technologies that we can leverage across our current seat component portfolio, and expand in China and North America,” he said.

Keiper, based in Kaiserslautern, Germany, is a leader in recliner system technology and is renowned for its engineering and manufacturing expertise in metal components and mechanisms. The acquisition will include approximately 4,750 employees globally in seven countries.


Belinda Stronach Bails Out Of Magna

Once seemed destined to run family firm.

by on Dec.22, 2010

Seemingly destined to run the family business, Belinda Stronach has decided to leave Magna.

One of the most powerful women in the Canadian auto industry has tendered her resignation leaving observers guessing whatcaused Belinda Stronach to leave Magna International – and where she might show up next.

The daughter of Magna founder Frank Stronach, she will resign from her role as Executive Vice-Chair and member of the Board of Directors, effective December 31, 2010.  Her move follows a settlement between the company and its founder, earlier this year, that saw Frank Stronach relinquish his control over most of the company he founded in a machine shop shortly after emigrating from Austria after the Second World War.

Your Trusted Source! Click Here to Subscribe!